The mortgage market has felt like a triathlon as of late. A triathlon is a mad event, isn’t it? Staying up into the small hours to watch the Olympic race unfold made me exhausted just watching them, and strangely reminded me of everything we have been through in the last 18 months.
Some hard slog, swimming through unchartered waters at first, then cycling like crazy to keep up with the Stamp Duty rush and now it seems we have settled down for a nice long run. We will get to that finish line!
It’s been a much quieter week in the mortgage market itself, after the fanfare of the lowest rates on record being released last week, but lenders have still been quietly going about their business and making a few improvements here and there.
One of the developments which I am sure we will see a lot more of in the next few months and years is the Green Agenda. A few lenders now have cheaper rates or fees available for those buying a property with an EPC rating of A, B, or C or doing up the property to meet those standards. You can find out more about the green agenda in this episode of The Property Show podcast.
High Net Worth lender Coutts is the latest, offering a £2,000 discount of their fees for this.
It is therefore worth pointing out the EPC rating to your broker if buying or selling a property with higher ratings.
One of the other items causing a stir, and issues for borrowers, is the popularity of Buy Now, Pay Later Schemes like Klarna. These schemes seem harmless but can affect credit scores and borrowing capacity, with some instances being reported of mortgages being declined because of their usage.
Again, this is where your friendly neighbourhood broker comes in, able to assess the situation and approach the right lender.
There was also a song and dance made by Housing Secretary Robert Jenrick around the fact that he reckons in most cases there is now no need for EWS1 forms on flats below 18 meters. Before we all get over-excited however, there is still some way to go to convince valuers and lenders of this, but watch this space…
Have a great week.
In terms of mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 0.91% (3.30% APRC) and 5-year fixes from 0.99%, (2.40% APRC) whilst variable tracker rates are around from 1.00%, (3.20% APRC).
Those looking at Buy-To-Let can now obtain products from 1.19%, (4.40% APRC) for a 2-year fixed or 5-year fix are available from 1.69% (3.70% APRC).